The growing of public liability companies and big addition in the figure of investors owing portion and the separation of ownership from control of companies has called for regular auditing of corporate fiscal records ( Owojori and Asaolu, 2009 ) . Harmonizing to the American Institute of Certified Public Accountants ( AICPA ) , the aims of the ordinary audit of fiscal statement by independency hearer is the look of an sentiment on the equity or otherwise in all stuffs with regard to fiscal place, consequences of operation and its hard currency flows in commanding with by and large accepted accounting rules. Such statutory audits can non forestall and cut down mis-appropriation of corporate fund. Furthermore, modern organized corporate frauds are sophisticated and the demand to react to this altering condemnable menace calls for the accomplishments of non traditional experts like comptrollers and legal practicians.
Fraud losingss impact virtually every sector of the economic system. Despite important progresss in fraud sensing engineerings, fraud losingss continue to present a important job to many in both the private and public sectors of the economic system. The ruinous concern failures of the last decennary have been uncovering in many degrees ( Golden, et. Al, 2006 ) . But the present decennary is non really different. Most people seemed to be fighting. How could these monolithic frauds have occurred? How can such events be deterred, if non wholly prevented in the hereafter? Who is responsible for disincentive and probe? What methods are effectual? However, there are far more inquiries than replies, and all the inquiries are hard.
Frauds are committed in all domains of human activities, non merely in concern, but besides in public and fiscal sectors ( Ratlift et. al. , 2006 ) . Fraud is a scheme to accomplish a personal or organisational end or to fulfill human demands. It is any action, behavior or unwritten looks intentionally aimed at misrepresentation and /or misinformation. It is normally defined as a sequence of activities perpetrated to obtain money, belongings or services, to avoid payment or loss of services or to procure personal or concern advantages. These Acts of the Apostless are non dependent upon the application of menace of force or of physical force ( International Standards for Professional Practice of Internal Auditing, 2002 ) . However, a end or demand can be satisfied by honest agencies.
Fraud has ever been present since the times reached by human memory widening up to our yearss and is likely to go on to be committed in the hereafter. It produces damaging consequence non merely upon the fiscal position and public presentation of the constitution or state, but may destroy its image and damage its fight. Fraud specifically creates obstructions to the development of foreign investing.
Harmonizing to Webster ( 1997 ) , probe is defined as “ to look into ; a careful hunt or systematic enquiry ; to follow up or do research by patient enquiry, observation and scrutiny of facts. In the fraud sphere, the definition of probe could be expanded to include the importance of co-ordination activities with jurisprudence enforcement entities, therefore the term forensic. Investigation consists of activities aimed at obtaining adequate grounds and information to halt fraudulent activity, to obtain recovery of assets or damages and to supply information and support for the successful prosecution and strong belief of the fraudster ( s ) .
Mounce and Frazer ( 2002 ) have noted that forensic accounting is one emerging calling available to accounting professionals. Harmonizing to Enyi ( 2008 ) , forensic probes look beyond the figures in fiscal records and trades straight with the concern world of the state of affairs at manus. Broadly, forensic accounting is the forte that involves the integrating of accounting, scrutinizing and fact-finding accomplishments. It provides an accounting analysis that is suited to the tribunal which will organize the footing for treatment, argument and finally aids in difference declaration. It therefore encompasses both judicial proceeding support and fact-finding accounting.
In Nigeria, fraud in public and private sectors of the economic system has been seen as one of the major factors of the dwindling economic system. The Transparency International in their Corruption Perception Index in early 2002, pronounced Nigeria as one of the most corrupt states in the universe. This was in malice of the fact that democratic establishments had been introduced and the Independent Corrupt Practices and Other Related Offences Commission ( ICPC ) established. Even as at today, Nigeria occupies the last but one place down the ladder among states adjudged to be corrupt by Transparency International Corruption Perception Index. Again in 2003, the Economic and Financial Crimes Commission ( EFCC ) was established to look into fiscal offenses such as progress fee fraud and money laundering ( EFCC Act 2004 and Ribadu, 2006 ) . This anti-graft Commission was established partly in response to force per unit area from the Financial Action Task Force ( FATF ) on Money Laundering which named Nigeria as one of 23 states non-cooperative in the international community ‘s attempts to contend money laundering. Since so, how has the two anti-graft bureaus fared with controling the threat of fraud in Nigeria? While there may be some success narratives, including the recent recoveries of financess acquired in deceitful ways from bank executives, a batch still needs to be done.
This research seeks to analyze the application of forensic accounting techniques in fraud bar and sensing in Nigeria.
1.2 Statement of the Research Problem
Fraud has ever been present since the times reached by human memory widening up to our yearss and is likely traveling to go on to be committed in the hereafter. It produces damaging consequence non merely upon the fiscal position and public presentation of the constitution or state, but may destroy it image and damage it competitiveness. Fraud specifically creates obstructions to the development of foreign investing.
Fraud is the figure one enemy of the concern universe. No company is immune to it and it is in all plants of life ( Nwankwo, 1991 ) . From clip to clip, fraud revelations result in immense fiscal dirts and bankruptcies of even big international corporations. Corporations like Enron and WorldCom have non been spared its consequence. MackeviA?ius and KazlauskienA- ( 2009 ) have noted that deceitful accounting has bought about absolute damaging losingss to such planetary operators as Xerox, Kmart, GlobalCrossing, Adelphia Communications and a figure of others.
No money is wholly free, but has its legal usage. It hence means that the abuse of any sum will impact negatively on where it should be lawfully used. The consequence of such can be on the organisation or the whole state. If the consequence is non direct, it may be indirect as it may impact installations and substructure that is supposed to be good to the concerned
Many experts agree that there is an reverse relationship between the economic system and fraud ( Domzalki and McGladrey, 2009 ) . In Nigeria, the perennial infrastructural decay and general systemic prostration that have frequently held back the state ‘s development has been linked to corruptness ( Thisday, 2009 ) . Even though fraud and corrupt patterns is globally endemic ( Adefila et. al. , 2006 ) , the rate at which it is perpetrated in Nigeria is perilously dismaying. Even though the Nigerian authorities had set up two agencies- The Economic and Financial Crimes Commission ( EFCC ) and the Independent Corrupt Practices and other related offenses Commission ( ICPC ) to contend fraud and corruptness in the Country, it is unreassuring that incidences of transplant and other signifiers of fraud have become so widespread that it is fast presuming an epidemic proportion. Equally unreassuring is the civilization of brazenness on show as it is a common sight in Nigerian tribunal premises for arraigned corrupt functionaries to look in tribunal suites beaming with wide smilings and back slapping one another alternatively of demoing some soberness. Some of them would even engage crowds in a common frock codification who hail them outside tribunal suites as if they were some sort of heroes. It is the belief of the present research worker that the effectual application of forensic accounting can cover with some of these inordinate.
It is in position of the above entries and endemic nature of fraud in Nigeria and the necessity of specialize accomplishments to unveil such frauds that it becomes imperative to recommend for the debut of forensic accounting techniques into the course of study of the undergraduate programmes in accounting. Education is has a formative consequence on the head, character or physical ability of an person through the airing of cognition. Educational establishments provide the avenue through which the cognition is disseminated. They provide the barometers to mensurate the potency for airing of new constructs and so its hereafter development. Educational establishments can go an avenue for puting free a people from ignorance. This is because cognition is easy passed through the pupils who are organizing future values and ethos. Of class, pupils represent the hereafter manpower possible of any state and should be empowered with cognition.
As would be seen from the literature reappraisal in the following subdivision, forensic accounting instruction continues to have high precedence attending in course of study development in developed states. But this is surely non the instance with many developing states, like Nigeria, yet deceitful activities are common phenomena in the state. It was merely really late ( May, 2010 ) that the first set of 16 ( 16 ) alumnuss completed a forensic accounting certification class that was developed by the Institute of Chartered Accountant of Nigeria ( ICAN ) . They were besides inducted into the Institute as forensic experts in a ceremonial that could be described as a milepost, non merely in the history of the Institute but that of the full state at big. Besides, most of the surveies on forensic accounting instruction where carried out on academicians and practicians. It is nevertheless, of import to earn the positions of besides from pupil in this of import discourse. Accounting pupils are portion of the mechanisms through which course of study alteration could be actualized. It should hence be interesting to appreciate their positions on this issue. This survey seeks to make full the current nothingness in the literature by analyzing the degree of consciousness of forensic accounting by accounting pupils in a figure of universities in Nigeria.
Forensic accounting being a really immature subdivision of the accounting profession all over the universe is comparatively younger in Nigeria. It is even dubious if there is important consciousness of this subdivision of accounting among practicians, pupils and faculty members in Nigeria, however the usage of its techniques in fraud probe. With forensic accounting, it is anticipated that instances of fraud will drastically cut down in Nigeria. This research hence seeks to analyze the application of forensic accounting techniques in fraud bar and sensing in Nigeria
1.3 Aim of the survey
The purpose of this survey is to analyze the application of forensic accounting techniques in fraud bar and sensing in Nigeria.
1.4 Aims of the survey
1. To look into the mechanisms of fraud bar and sensing, and their degrees of effectivity in Nigeria.
2. To place the major factors that hinder the application of forensic accounting techniques in fraud bar and sensing in Nigeria.
3. To analyze practicians ‘ sentiments and behavioral purpose to utilize forensic accounting techniques in fraud bar and probe in Nigeria.
4. To research the degree of consciousness of forensic accounting techniques in Nigeria.
5. To analyze the preparedness of Universities in taking up forensic accounting classs.
1.5 Research Questions
1. What are the common fraud bar and sensing mechanisms and their degree of effectivity in Nigeria? Is at that place any important difference?
2. What are the major factors that hinder the application of forensic accounting in fraud bar and sensing in Nigeria?
3. What influence will educational activities of universities have on practicians ‘ consciousness in forensic accounting techniques?
4. What influence will awareness in forensic accounting service have on the sensed benefits of utilizing forensic accounting techniques?
5. What influence will awareness in forensic accounting service have on the sensed hazards of utilizing forensic accounting techniques?
6. To what extent will the sensed benefits of utilizing forensic accounting techniques in fraud bar and sensing influence practicians ‘ purpose to utilize forensic accounting services in Nigeria?
7. How will the sensed hazards of utilizing forensic accounting techniques for fraud bar and sensing influence the practicians ‘ purpose of utilizing forensic accounting techniques in Nigeria?
8. What will be the influence of sensed susceptibleness to fiscal fraud on practicians ‘ purpose to utilize forensic accounting services?
9. What will be the influence of sensed badness of fiscal fraud on practicians ‘ purpose to utilize forensic accounting services?
10. What will be the consequence of sensed benefits, perceived hazards, perceived susceptibleness to and sensed badness of fraud on practicians ‘ purpose to utilize forensic accounting services in fraud bar and sensing in Nigeria?
11. What is the degree of consciousness of forensic accounting techniques among the undergraduate in Nigeria?
12. How ready are universities in taking up forensic accounting classs?
1. Educational activities of Nigerian Universities will positively act upon consciousness in forensic accounting techniques.
2. Awareness of forensic accounting techniques will positively act upon the sensed benefits of utilizing it in fraud bar and probe in Nigeria.
3. Awareness of forensic accounting techniques will negatively act upon the sensed hazards of utilizing it in fraud bar and probe in Nigeria.
4. The sensed benefits of utilizing forensic accounting techniques will positively act upon the purpose to utilize it as major fraud bar and probe method in Nigeria.
5. The sensed hazards of utilizing forensic accounting techniques will negatively act upon the purpose to utilize it as major fraud bar and probe method in Nigeria.
6. The sensed susceptibleness to fraud will positively act upon practicians ‘ purpose to utilize forensic accounting techniques in fraud bar and probe in Nigeria.
7. The sensed badness of fraud in will positively act upon practicians ‘ purpose to utilize forensic accounting techniques in fraud bar and probe in Nigeria.
1.7 Scope of the survey
This survey was conducted on pupils, faculty members and practicians of accounting profession in Nigeria. However, it was conducted on pupils who were in their 3rd and concluding old ages of survey in Federal universities that were selected as samples. Third and concluding twelvemonth pupils are more likely to hold higher grasp of the relationship between their class of survey and world of employment than first and 2nd twelvemonth pupils. The pick of Federal universities was based on the fact that they are by and large perceived to be better resourced than their province and private opposite numbers. The resource advantage could therefore impact their course of study content in footings of learning forensic accounting. Since there is no province in the state with more than one federal university, the provinces where the sampled universities were selected besides served as samples from where practicians were selected. This was to let for speedy and easy aggregation of informations. The practicians were those hearers and comptrollers at leading places in their sections, ministries and units.
1.8 Significance the survey
The initial construct of the thought to analyze forensic accounting was borne out of the demand to heighten fraud bar and sensing in Nigeria. Fraud and corrupt patterns have slowed down the gait of the state ‘s development. While most states have been able to cut down the happening of fiscal fraud in both the private and public sectors, the threat is instead on the addition in Nigeria, despite the constitution of bureaus to discourage such happenings.
First, this survey is important in the sense that it has shown that current fraud bar and sensing mechanisms in usage are non the most effectual. On the other manus, it has suggested the usage of forensic accounting techniques which is one on the most effectual methods in battling the threat.
Second, the findings of this survey should arouse Nigerian Universities to get down to present forensic accounting classs in their undergraduate course of study. The survey has revealed the pressing demand for forensic accounting instruction in making consciousness on the usage of forensic accounting techniques. The National Universities Commission ( NUC ) now has information in her custodies through which she could take a firm stand on accounting sections to include forensic accounting instruction in their course of study before such sections are accredited.
Third, the public service, private administrations and policy shapers now have information on the province of forensic accounting in Nigeria for their determination devising. Forensic accounting can therefore be usage as a tool in the bar and sensing of fraud in Nigeria, as being done elsewhere.
1.9 Contribution to knowledge
In position of the nature of fraud and its consequence on concern, administrations, authorities, etc, surveies on how to forestall or observe fraud are of planetary relevancy. Although many surveies have been conducted on forensic accounting in many parts of the universe, particularly in the United States of America, no comprehensive survey has been done in developing economic systems as Nigeria. Where any information exists, they are merely little by little. This is hence the first effort of such. Hence, the findings of this survey are parts from developing economic systems.
The present survey has added to the turning organic structure of literature in forensic accounting techniques. However, old empirical surveies have focused entirely on the positions of practicians and faculty members, in measuring the demand for forensic accounting. But the present survey nowadayss afresh and typical grounds from accounting undergraduates, in add-on to those of practicians and faculty members from the underdeveloped universe.
This survey has farther strengthened the findings of the Muthusamy et Al ( 2010 ) on the organisational purpose to utilize forensic accounting services. However, while their findings were based on directors and main executive officers in private administrations in Malaysia, the present survey made usage of managers of histories and hearers public service in Nigeria. This has farther supported research theoretical account.
1.10 Administration of the thesis
This thesis is organised into six chapters. Chapter one is the general debut and background information. It presents the research job, purposes and aims of the survey, significance of the survey, and so on. Chapter two is the literature reappraisal. Chapter three is on theoretical underpinning and development of the research propositions. The methodological analysis for the survey is set out in chapter four. Chapter five nowadayss the consequences of this research every bit good as treatment of the determination. The survey is summarized in chapter six, where we besides have recommendations and decision